hai friends,
my question is that,
HO which is in state A, transferred some goods to branch which is in state B.
1.HO purchased all goods in state A and paid the VAT.
2.HO transferred some goods to branch which is in state B
3.Branch sold goods in the state B and Paid VAT.
Is it branch can Avail vat input credit whatever paid by HO on its purchases in state A.
pls reply soon,
Regards,
harikrishna
No,branch cann't avail the input tax credit on the goods purchased in the state A.However ,HO is also restricted to claim input tax credit to extent of goods sold in the state A by way of reduction in input tax credit corrosponding to the sale/transfer made to branch located in state B.(as per the rule 53(3) of Maharastra Value Added Tax Rules'2005)
Dear Harikrishna,
The treatment of goods differ from state to state.
Let us know the state names also,
ho is in tamilnadu and branch is in andhra pradesh
Branch B can not claim VAT Credit & Purchase is made in HO & HO can claim Vat credit up to the eligible limit ( Which is calculated according to formula, e.g. in AP VAT more than 4% can be claimed fully & up to 4% to be calculated in ratio of taxable sale & exempt sale/Transaction)
SUPPOSE I M A COMPANY THEN CAN I TAKE VAT INPUTCREDIT ON MATERIAL USED FOR INTERIOR WORK OF MY SCHOOL.
Branch cannot avail input tax credit . Even HO should reverese the amout of Input Tax for the value of goods transfered to another state.
| Originally posted by :Raveesh | ||
| " |
Hi , Branch can't calim the VAT benefit in case of Goods t/f from HO . Even HO has to reverse the VAT input claimed on purchsae of goods t/f to the branch equal to the rate of CST . Regards,
M P Singh |
" |
| Originally posted by :harikrishna | ||
| " | hai friends, my question is that, HO which is in state A, transferred some goods to branch which is in state B. 1.HO purchased all goods in state A and paid the VAT. 2.HO transferred some goods to branch which is in state B 3.Branch sold goods in the state B and Paid VAT. Is it branch can Avail vat input credit whatever paid by HO on its purchases in state A. pls reply soon, Regards, harikrishna |
" |
my answer is we calculated cogs in material which good s transfer to other state and calculate tax @ 4 %
CAclubindia
